Shanghai luxury real estate seen going from $15,000 per square meter to at least $18,000 within a year as Chinese sticking to home these days for high end real estate. (Image provided by Shutterstock)
The Chinese can?t get enough penthouse luxury. They?re pausing overseas, as the government clamps down on capital flight, and are busy gobbling up luxury high rise apartment buildings in Beijing. So much so, in fact, that the price for luxury towers in the city just hit a record high of more than 70,000 yuan per square meter, or roughly $10,500 per square meter. (One square meter is equal to nearly 11 square feet.)
China?s luxury housing market is booming. Mainland developers are bidding to dollar for land in tier one cities like Shanghai because they know they can find the buyers. Many of them already have two or three properties, according to property services firm Tospur in Shanghai. But over the last decade, real estate has become the one store of value that wealthy Chinese can count on. The government has been unable to curtail this trend, even as it touted the stock market, new IPOs, and backstopped falling equity prices in order to convince investors that the central bank had their backs. The Chinese aren?t buying it. They?re buying fancy digs in the city instead.
In Shanghai, there were 682 transactions for new apartments priced over 100,000 yuan ($15,000) per square meter in the first half, surpassing 2015 sales figures, Tospur data shows.
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